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SÜSS MicroTec SE

Quarterly Report May 8, 2013

422_10-q_2013-05-08_ff0ac35e-3177-4de0-85bb-43783cb9521d.pdf

Quarterly Report

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1 January – 31 March

Key figures

in 1 million 3M/ 2013 3M/ 2012 Change
Continuing operations
Order entry 34.9 39.0 -10.5 %
Order backlog as of 03 / 31 91.5 99.8 -8.3 %
Total sales 30.1 31.2 -3.5 %
Sales margin -8.3% -0.6 % -7.7 %-points
Gross profit 7.3 11.3 -35.4 %
Gross margin 24.3% 36.2 % -11.9 %-points
Cost of sales 22.8 19.9 14.6 %
R&D costs 2.2 2.4 -8.3 %
Continuing operations
EBITDA -1.7 1.5 -
EBITDA margin -5.6% 4.8 % -10.4 %-points
EBIT -3.3 0.0 -
EBIT margin -11.0% 0.0 % -11.0 %-points
Earnings after tax -2.5 -0.2 <-100.0 %
Earnings per share (in 3) -0.13 -0.01 <-100.0 %
Continuing and discontinued operations
Earnings after tax -2.5 1.3 -
Earnings per share (in 3) -0.13 0.07 -
Balance sheet and cash flow
Equity 124.6 121.3 2.7 %
Equity ratio 71.2% 60.1 % 11.1 %-points
Return on equity -2.0% -0.2 % -1.8 %-points
Balance sheet total 174.9 201.8 -13.3 %
Net cash 25.1 38.5 -34.8 %
Free cash flow(1) -7.2 0.3 -
Further key figures
Investments (2) 1.0 0.6 66.7 %
Investment ratio 3.3% 1.9 % 1.4 %-points
Depreciation 1.6 1.5 6.7 %
Employees as of 03 / 31 693 687 0.9 %

CONTENTS

  • 004 Foreword
  • 006 Highlights Q1 2013
  • 007 Investor Relations
  • Debt Debate Once Again Dominates the Markets in Europe
  • The SUSS MicroTec Share
  • 009 Business Performance Q1 2013
  • 013 Financial Report
  • 025 Service

Foreword of the Management Board

Dear Shareholders,

We continue to find ourselves in a challenging macroeconomic environment. In Europe the debt crisis has once again intensified, initially with the threat of insolvency and then with the drawn-out bailout of Cyprus. In addition, the modest economic outlook for 2013 has not generated any new impetus for the economy and the capital markets. We assume that the current fiscal year will once again be decisively shaped by political decisions on the European and international level. With respect to order entry, we look back on a positive first quarter of 2013 following a strong fourth quarter of 2012. We were able to record new orders of EUR 34.9 million, thus at the upper end of estimates for the first quarter. Based on the orders position in the first quarter of 2013 and the order backlog at the end of 2012, we remain cautiously optimistic for the remainder of the year.

On the operations side, there is positive news from the first quarter. In March 2013, we received a follow-on order from a leading international Integrated Device Manufacturer (IDM) for the latest generation of production bond clusters. The customer, which installed the first tools from us in 2012, plans to enter into preserial production with the newly ordered systems. The equipment was configured to temporarily bond and debond 300mm wafers using adhesives from Thin Materials (TMAT). The placement of this order marks the first time that a production customer is preparing to enter into the pre-serial production of 3D integration processes. We view this as an important milestone on the way toward the large-scale maturity of 3D integration and the opening of a new and attractive growth market.

In addition, we signed an agreement to acquire the previously leased real estate at the Garching site in the first quarter, sending a clear signal about the extraordinary significance of Garching as an administrative and production site. With that acquisition, we are ensuring not only savings on the rental payments but also a high degree of operational flexibility in view of Companyspecific requirements for the property.

The Quarter in Figures

Order entry of EUR 34.9 million in the first three months of the 2013 fiscal year declined as expected from EUR 39.0 million in the previous year's quarter – a drop of 10.5 percent. Sales of EUR 30.1 million in the first quarter were only slightly below the level in the previous year's quarter (Q1 2012: EUR 31.2 million). As a result, the order backlog as of March 31, 2013 amounted to EUR 91.5 million (March 31, 2012: EUR 99.8 million).

Earnings before interest and taxes (EBIT) of EUR -3.3 million were below the EUR -0.04 million of the previous year's quarter. EBIT in the first quarter of 2012 included one-time currency effects of EUR -0.4 million. This resulted from the settlement of Company-internal foreign currency credits of SUSS MicroTec AG to SUSS MicroTec Inc. in connection with the acquisition of Tamarack Scientific in March 2012. Earnings after taxes (EAT) for continuing operations amounted to EUR -2.5 million, compared to EUR -0.2 million in the previous year. Earnings after taxes (EAT) amounted to EUR -2.5 million for continuing and discontinued operations, compared to EUR 1.3 million in the previous year. Earnings in 2012 included a tax-free amount of EUR 1.5 million, which resulted from the sale of the Test Systems division in 2010. The basic earnings per share (EPS) totaled EUR -0.13 (previous year: EUR 0.07).

Cash flow from operating activities was EUR -6.1 million, compared to EUR 0.9 million in the previous year's quarter. Free cash flow for the quarter before consideration of acquisitions and extraordinary effects amounted to EUR -7.2 million (previous year's quarter: EUR 0.3 million). As of March 31, 2013, the SUSS MicroTec Group therefore had cash and interest-bearing securities of EUR 29.3 million (December 31, 2012: EUR 36.6 million). The net cash position of EUR 25.1 million was lower than the EUR 32.3 million as of December 31, 2012 (March 31, 2012: EUR 38.5 million).

Frank Averdung Chief Executive Officer of SUSS MicroTec AG

Michael Knopp Chief Financial Officer of SUSS MicroTec AG

The management board of SUSS MicroTec has decided to focus permanent bonding on MEMS and LED applications to address the unsatisfying earnings level of this product line. With this step SUSS MicroTec takes into account the technological advancement of the product portfolio and the market developments of the recent years. In connection with these measures a noncash adjustment of EUR 6.8 million in the second quarter 2013 will be necessary. The write-offs are on capitalized development costs, which originate from the years prior to 2008, as well as on no longer needed demonstration tools and inventories. The future growth of the Substrate Bonder division will mainly be driven by the product line Temporary Bonding which has been successfully established in the market. The sales contribution of the Permanent Bonding product line will for the time being remain at the level of the previous year. With these changes the Substrate Bonder division of SUSS MicroTec is well positioned to benefit from the expected growth in the target markets 3D IC, MEMS and LED in the years to come.

Outlook

Management reiterates the sales guidance of approximately EUR 150 million for the fiscal year 2013. Due to the write-offs, SUSS MicroTec now expects a negative EBIT in the mid-to-high single digit million Euro range for the fiscal year 2013. For the second quarter of the fiscal year 2013 the company expects orders to come in between EUR 30–40 million.

Garching, Germany, May 2013

Frank Averdung Michael Knopp

Chief Executive Officer Chief Financial Officer

Highlights q1 2013

Purchase of Property at Garching Production Site

In January 2013 SUSS MicroTec announced the acquisition of the previously rented real estate at the group's headquarter in Garching. The purchase agreement was signed on January 23, 2013, the transition of the title to the property is expected to take place on September 30, 2013. The purchase of the property is expected to generate a positive annual EBIT effect of EUR 0.4 million. Besides the rent savings, SUSS MicroTec will gain a great deal of operational flexibility with regards to the company specific property requirements and makes a statement on the importance of the production site in Garching. This property offers interesting perspectives to enlarge the facilities in the future and its traffic connections as well as the proximity to research campuses in Munich are very attractive.

Rolith and SUSS MicroTec Announce Installation of 2nd Generation Nanolithography Tool

Rolith Inc., the leader in developing advanced nanostructured coatings and devices, has successfully installed a 2nd-generation nanostructuring prototype tool built by SUSS MicroTec under exclusive license from Rolith, Inc. in March 2013. This prototype is based on a disruptive nanolithography method (Rolling Mask Lithography – RMLTM) developed by Rolith, Inc. It enables users to create nanostructures over large areas – up to 1m x 0.3 m – of substrate materials in a high throughput and cost effective manner. The innovative optical nanolithography technology by Rolith together with our equipment solution allows printing of very small structures. With continuous rolling mask lithography, processing large substrate sizes is possible offering a completely new capability to our customers.

World Leading IDM places a follow up order for Bonding-Equipment for 300mm High-Volume Production

A world-leading IDM (Integrated Device Manufacturer) placed a follow up purchase order for the latest generation of high volume manufacturing temporary bond clusters from SUSS MicroTec. The customer, who has installed SUSS MicroTec tools in 2012 already, plans to enter into a pilot production with the new systems. The equipment was configured to temporarily bond and debond 300mm wafers using adhesives from Thin Materials (TMAT). Delivery of the bond cluster is expected for the second half of the fiscal year 2013.

Investor relations

Debt Debate Once Again Dominates the Markets in Europe

After Greece and Spain, now Cyprus is also caught up in the maelstrom of the European debt crisis. The country, its residents, and particularly the banking sector will have to accept massive cuts so that the country can be saved from long-term financial ruin. The most recent developments clearly demonstrate that the debt crisis still has Europe firmly in its clutches. In an interview with the Frankfurter Allgemeine Zeitung on April 7, 2013, Jens Weidmann, president of the German Bundesbank explained: "I believe that the time required to overcome the crisis will not be measured in months, but rather that we will be dealing with this for years to come. Regaining competitiveness, for example, and the consolidation of government finances are very comprehensive or extremely far-reaching challenges that will occupy us for a long time." This statement reinforces once again the prediction we made early on, in our report for the first quarter of 2012, when we stated that the European debt crisis was far from over and that real economic consequences were very likely. The initial effects in the form of weakened global economic growth for 2012 and a weak economic outlook for 2013 are already visible. The capital market could also be confronted with a continued period of volatility as a result of being influenced by this macroeconomic environment.

The SUSS MicroTec Share

After experiencing difficulties on the stock market last year, the SUSS MicroTec share was able to reverse this trend already in the fourth quarter of 2012 and recover significantly from its lows. On January 2, the share began the new fiscal year with a XETRA closing price of EUR 8.85. Over the course of January 2013, the share price, with additional research coverage by Bankhaus Lampe, was able to climb to EUR 10.00 once again. By mid-February, the price of the SUSS MicroTec share had moved slightly lower. After publication of preliminary figures for the 2012 fiscal year and the announcement of a restrained outlook for the full year in 2013, the share price responded with a significant drop. This trend was broken only with the announcement of an important customer order in the area of 3D integration on March 28, 2013. Following the report, the price rose sharply and the share was able to conclude the first quarter with an overall increase of one percent, corresponding to a closing price of EUR 8.91.

The two benchmark indexes TecDAX and Prime IG Semiconductor performed very differently in the first quarter of 2013. The TecDAX closed the first quarter of the year with a gain of approximately 11 percent, whereas the Prime IG Semiconductor recorded a slight decline of approximately one percent.

The average daily trading volume of SUSS MicroTec shares on all German stock exchanges in the first quarter of 2013 amounted to approximately 115,000 shares (Q1 2012: average daily trading volume of approximately 184,000 shares).

O1O Business Development in First Quarter of 2013

  • O1O Overview
  • O1O Orders Position and Sales by Region
  • O11 Business Development in the Individual Divisions

O14 Financial Report

  • O14 Consolidated Statement of Income (IFRS)
  • O15 Statement of Comprehensive Income (IFRS)
  • O16 Consolidated Balance Sheet (IFRS)
  • O18 Consolidated Statement of Cash Flows (IFRS)
  • O2O Consolidated statement of shareholders' equity (IFRS)
  • O22 Segment Reporting (IFRS)
  • O24 Selected Explanatory Notes

O28 Service

  • O28 Legal Structure of SUSS MicroTec Group
  • O29 Financial Calendar 2013
  • O29 Credits & Contakt

Business Development in First Quarter of 2013

of SUSS MicroTec AG

Overview

After a strong fourth quarter of 2012, the orders position weakened somewhat in the first quarter of 2013. Still it was possible to record total order entry of 134.9 million, representing a decline of 10.5% from the previous year's quarter (previous year: 139.0 million). Sales of 130.1 million in the first quarter were only slightly below the corresponding quarter of the previous year (Q1 2012: 131.2 million). The order backlog as of March 31, 2013 amounted to 191.5 million (March 31, 2012: 199.8 million).

Earnings before interest and taxes (EBIT) of 1 -3.3 million were below the 1-0.04 million of the previous year's quarter. EBIT in the first quarter of 2012 included one-time currency effects of 1-0.4 million. This resulted from the settlement of Company-internal foreign currency credits of SUSS MicroTec AG to SUSS MicroTec Inc. in connection with the acquisition of Tamarack in March 2012. Earnings after taxes (EAT) for continuing operations amounted to 1-2.5 million, compared to 1-0.2 million in the previous year. Earnings after taxes (EAT) amounted to 1-2.5 million for continuing and discontinued operations, compared to 11.3 million in the previous year. Earnings in 2012 included a tax-free amount of 11.5 million, which resulted from the sale of the Test Systems division in 2010. The basic earnings per share (EPS) totaled 1-0.13 (previous year: 10.07).

Cash flow from operating activities was 1-6.1 million, compared to 10.9 million in the previous year's quarter. Free cash flow for the quarter before consideration of acquisitions and extraordinary effects amounted to 1- 7.2 million (previous year's quarter: 10.3 million). As of March 31, 2013, the SUSS MicroTec Group therefore had cash and interest-bearing securities of 129.3 million (December 31, 2012: 136.6 million). The net cash position of 125.1 million was lower than the 132.3 million as of December 31, 2012 (March 31, 2012: 138.5 million).

Orders Position and Sales by Region

In the first quarter of 2013, all regions recorded a decline in order entry: The region of Europe recorded a drop of approximately 16%, North America a drop of approximately 2%, Japan a drop of 85%, and Rest of Asia a decline of approximately 5%.

Regional sales displayed double-digit declines in the first quarter in all regions, except for Rest of Asia. While the region of North America recorded a decline of approximately 24%, Europe reported a decline of 37.5%, and sales in Japan fell by approximately 71%. Only the region of Rest of Asia recorded a significant increase in sales of approximately 105% compared to the previous year's quarter. The reason for this was the unusually low sales generated by the region of Rest of Asia in the first quarter of 2012. With a share of total sales of 56.3%, the sales share of Rest of Asia returned to the normal level.

Order Entry by Region in in 3 million

Sales by Region in 3 million

Q1 2012 Q1 2013

Business Development in the Individual Divisions

Lithography

The Lithography division comprises the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines. These product lines are developed and produced in Germany at the locations in Garching near Munich and Sternenfels. The Lithography division was strengthened in the first quarter of 2012 by the acquisition of Tamarack Scientific Co., Inc., Corona, USA. Tamarack is a leading provider of UV projection lithography devices as well as laser-based microstructuring systems.

The Lithography division recorded a decline in order entry and sales in the first three months of the 2013 fiscal year. Order entry of 121.7 million was 19.0% below its total of 126.7 million a year earlier. Division sales in the first quarter of 2013 amounted to 118.6 million after 121.5 million in the previous year's quarter. Division earnings deteriorated as a result of lower total sales combined with an unfavorable product mix, declining from 14.3 million to 10.4 million.

SubstratE Bonder

The Substrate Bonder division comprises the development, production, and sale of the Substrate (Wafer) Bonder product line and is located at our site in Sternenfels (Germany).

In the first quarter of the new fiscal year, the Substrate Bonder division recorded a significant increase in order entry from the previous year's quarter, reaching 110.9 million after 15.8 million in the first quarter 2012. While order entry rose by 88% in the quarterly comparison, sales declined from 14.3 million to 13.1 million. Division earnings deteriorated by the end of the quarter to 1-4.2 million (Q1 2012: 1-3.2 million). Weak earnings resulted from the lower absolute sales level as well as high research and development costs.

Photomask Equipment

Q1 2012 Q1 2013

The Photomask Equipment division comprises the development, manufacture, and sale of the HMx, ASx, MaskTrack, and Mask-Track Pro product lines. The development and production of specialized systems for the cleaning and processing of photomasks for the semiconductor industry are also conducted at the Sternenfels site in Germany.

The Photomask Equipment division recorded lower order entry of 11.1 million in the first quarter of 2013 (Q1 2012: 15.5 million) as well as much higher division sales of 17.5 million (Q1 2012: 14.5 million). Accordingly, division earnings improved to 11.2 million in the first quarter 2013 (Q1 2012: 1-0.4 million).

Photomask Equipment Division Overview in 3 million

Others

The Others division comprises Micro-optics activities at the Hauterive, Switzerland, location, the C4NP business, as well as the costs for central Group functions that generally cannot be attributed to the main divisions. Ownership of the Micro-optics business was boosted to 100% in the first half of 2012. In this way, the company, which commands important enabling technologies, was even more closely tied to SUSS MicroTec.

Division sales of 10.9 million remained on the same level as in the previous year's quarter, while order entry grew by approximately 20 percent to 11.2 million (Q1 2012: 11.0 million). Division earnings of 10.7 million were at the same level as in the previous year.

Financial Report

of SUSS MicroTec AG

Consolidated Statement of Income (IFRS)

in 1 thousand 01.01.2013–03.31.2013 01.01.2012–03.31.2012
Sales 30,095 31,208
Cost of sales -22,795 -19,923
Gross profit 7,300 11,285
Selling costs -4,449 -4,452
Research and development costs -2,232 -2,389
Administration costs -3,919 -3,989
Other operating income 1,021 729
Other operating expenses -1,025 -1,226
Analysis of net income from operations (EBIT)
EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) -1,740 1,472
Depreciation and amortization of tangible assets,
intangible assets and investments in subsidiaries
-1,564 -1,514
Net income from operations (EBIT) -3,304 -42
Financial income 138 220
Financial expenses -90 -223
Financial result 48 -3
Loss from continuing operations before taxes -3,256 -45
Income taxes 736 -200
Loss from continuing operations -2,520 -245
Net profit or loss from discontinued operations (after taxes) 0 1,507
Net profit or loss -2,520 1,262
Thereof equity holders of SUSS MicroTec -2,520 1,236
Thereof minority interests 0 26
Earnings per share (basic)
Basic earnings per share from continuing operations in 1 -0.13 -0.01
Basic earnings per share from discontinued operations in 1 0.00 0.08
Earnings per share (diluted)
Diluted earnings per share from continuing operations in 1 -0.13 -0.01
Diluted earnings per share from discontinued operations in 1 0.00 0.08

Statement of Comprehensive Income (IFRS)

in 1 thousand 01.01.2013–03.31.2013 01.01.2012–03.31.2012
Net profit or loss -2,520 1,262
Items that will not be reclassified to profit and loss
Remeasurements on defined benefit pension plans 2 -11)
Other comprehensive income after tax for items that will
not be reclassified to profit and loss
2 -1
Items that will be reclassified subsequently to profit and loss
Fair value fluctuations of available for sale securities -80 120
Foreign currency adjustment -91 14
Cash flow hedges 42 -38
Deferred taxes 10 -23
Other comprehensive income after tax for items that will be reclassified to profit and loss -119 73
Total income and expenses recognized in equity -117 72
Total income and expenses reported in the reporting period -2,637 1,334
Thereof equity holders of SUSS MicroTec -2,637 1,301
Thereof minority interests 0 33

1) Since January 1, 2013, the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).

Consolidated Balance Sheet (IFRS)

in 1 thousand
ass
ets
03.31.2013 12.31.2012
Non-current assets 37,934 37,325
Intangible assets 6,893 7,504
Goodwill 15,447 15,394
Tangible assets 12,246 12,068
Tax refund claims 80 80
Other assets 580 773
Deferred tax assets 2,688 1,5061)
Current assets 136,961 143,088
Inventories 85,707 82,179
Trade receivables 17,675 21,758
Other financial assets 600 547
Securities 20,282 11,394
Tax refund claims 363 295
Cash and cash equivalents 9,037 25,192
Other assets 3,297 1,723
Total assets 174,895 180,413

1) Since January 1, 2013, the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).

Liabilities & shareholders' equity in 1 thousand 03.31.2013 12.31.2012
Equity 124,554 127,193
Total equity attributable to shareholders of SUSS MicroTec AG 124,554 127,193
Subscribed capital 19,116 19,116
Reserves 107,422 109,944
Accumulated other comprehensive income -1,984 -1,867 1)
Minority interests 0 0
Non-current liabilities 11,040 11,039
Pension plans and similar commitments 4,045 4,1191)
Provisions 110 296
Financial debt 3,978 3,981
Other financial liabilities 2,715 2,577
Deferred tax liabilities 192 66
Current liabilities 39,301 42,181
Provisions 3,010 3,602
Tax liabilities 841 1,050
Financial debt 199 288
Other financial liabilities 5,620 6,815
Trade payables 6,095 6,862
Other liabilities 23,536 23,564
Total liabilities & shareholders' equity 174,895 180,413

1) Since January 1, 2013, the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).

Consolidated Statement of Cash Flows (IFRS)

in 1 thousand 01.01.2013–03.31.2013 01.01.2012–03.31.2012
Net profit or loss (after taxes) -2,520 1,262
Amortization of intangible assets 967 1,073
Depreciation of tangible assets 597 440
Change of reserves on inventories 603 1,469
Change of reserves for bad debts 93 136
Other non-cash effective income and expenses -352 193
Gain from subsequent purchase price payment for Test business 0 -1,507
Change in inventories -3,700 -6,054
Change in trade receivables 3,966 2,207
Change in other assets -1,502 -74
Change in pension provisions -74 518
Change in trade payables -858 -1,292
Change in other liabilities and other provisions -2,290 2,517
Change of deferred taxes -1,056 57
Cash flow from operating activities -6,126 945
SUSS ­
MicroTec AG
Financi
al Report
019
in 1 thousand 01.01.2013–03.31.2013 01.01.2012–03.31.2012
Disbursements for tangible assets -749 -540
Disbursements for intangible assets -281 -126
Purchases of current available-for-sale securities -8,967 -16,918
Proceeds from redemption of available-for-sale securities 0 4,031
Proceeds from subsequent selling price for Test business 0 1,507
Payments for purchase of Tamarack 0 -5,184
Cash flow from investing activities -9,997 -17,230
Change in current bank liabilities -89 -142
Change in other financial debt -3 -96
Cash flow from financing activities -92 -238
Adjustments to funds caused by exchange-rate fluctuations 60 -252
Change in cash and cash equivalents -16,155 -16,775
Funds at beginning of the year 25,192 37,036
Funds at end of the period 9,037 20,261
Cash flow from operating activities includes:
Interest paid during the period 47 57
Interest received during period 154 371
Tax paid during the period 527 3,624
Tax refunds during the period 0 48

Consolidated statement of shareholders' equity (IFRS)

in 1 thousand Subscribed
capital
Additional
paid-in capital
Earnings reserve Retained Earnings
As of January 1, 2012 19,101 98,384 433 2,799
Adjustments1)
As of January 1, 2012 (adjusted) 19,101 98,384 433 2,799
Net loss 1,236
Total income and expenses recognized in equity
Total comprehensive income 1,236
As of March 31, 2012 19,101 98,384 433 4,035
As of January 1, 2013 19,116 97,613 433 11,896
Adjustments1)
As of January 1, 2013 (adjusted) 19,116 97,613 433 11,896
Net loss -2,520
Total income and expenses recognized
in equity
Total comprehensive income -2,520
As of March 31, 2013 19,116 97,613 433 9,376

1) Since January 1, 2013, the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and

comparatives 2012 have been restated. 2) Actuarial valuations of the actuarial gains and losses are only compiled as of December 31 each year. Present amounts exclusively result from adjustments due to exchange-rate fluctuations.

Equity Minority interests Total equity
attributable to
shareholders of
Suss MicroTec AG
Accumulated other comprehensive income
Fair value fluctua
tions of available
for sale securities
Cash flow hedges Foreign currency
adjustments
Remeasurements
on defined benefit
pension plans
120,393 689 119,704 172 -226 -959 0
-412 -412 -412
119,981 689 119,292 172 -226 -959 -412
1,262 26 1,236
72 7 65 86 -28 8 -1 2)
1,334 33 1,301 86 -28 8 -1
121,315 722 120,593 258 -254 -951 -413
128,106 0 128,106 179 -363 -768 0
-915 -915 -915
127,191 0 127,191 179 -363 -768 -915
-2,520 -2,520
-117 -117 -58 30 -91 22)
-2,637 0 -2,637 -58 30 -91 2
124,554 0 124,554 121 -333 -859 -913

Segment Reporting (IFRS) Segment information by business segment

in 1 thousand Lithography Substrate Bonder Photomask Equipment
3M/ 2013 3M/ 2012 3M/ 2013 3M/ 2012 3M/ 2013 3M/ 2012
External Sales 18,639 21,521 3,053 4,280 7,516 4,518
Internal Sales 0 0 0 0 0 0
Total Sales 18,639 21,521 3,053 4,280 7,516 4,518
Result per segment (EBIT) 422 4,291 -4,226 -3,245 1,192 -358
Income before taxes 392 4,291 -4,226 -3,246 1,190 -359
Significant non-cash items -22 -110 -661 -953 9 -330
Segment assets 78,322 74,547 37,431 38,486 10,492 16,221
thereof Goodwill 15,447 20,353 0 0 0 0
Unallocated assets
Total assets
Segment liabilities -24,910 -34,723 -6,143 -7,268 -2,852 -7,334
Unallocated liabilities
Total liabilities
Depreciation and amortisation 579 413 476 541 111 152
thereof scheduled 579 413 476 541 111 152
thereof impairment loss 0 0 0 0 0 0
Capital expenditure 89 2,478 22 95 9 22
Workforce at March 31 415 407 120 131 105 107

Segment information by region

in 1 thousand Sales
(continuing operations)
Capital expenditure Assets
(without Goodwill)
3M/ 2013 3M/ 2012 3M/ 2013 3M/ 2012 3M/ 2013 3M/2012
Europe 6,484 10,367 985 602 93,198 96,760
North-America 4,889 6,440 10 2,217 22,824 17,657
Japan 1,790 6,132 4 0 4,147 4,228
Rest of Asia 16,932 8,269 31 3 2,260 1,391
Consolidation effects 0 0 0 0 92 -1,829
Total 30,095 31,208 1,030 2,822 122,521 118,207
Total Consolidation effects Discontinued Operations
(Test business)
Continuing operations Other
3M/ 2013
3M/ 2012
3M/2012 3M/2013 3M/2012 3M/ 2013 3M/ 2012 3M/ 2013 3M/ 2012 3M/2013
30,095
31,208
- - 0 0 31,208 30,095 889 887
0 -2,046 -866 0 0 2,046 866 2,046 866
30,095
31,208
-2,046 -866 0 0 33,254 30,961 2,935 1,753
-3,304 - - 1,507 0 -42 -3,304 -730 -692
-3,256 - - 1,507 0 -45 -3,256 -731 -612
-683 - - 0 0 -1,383 -683 10 -9
137,968
138,560
- - 0 0 138,560 137,968 9,306 11,723
15,447
20,353
- - 0 0 20,353 15,447 0 0
36,927
63,260
174,895
201,820
-35,826
-51,295
- - 0 0 -51,295 -35,826 -1,970 -1,921
-14,515
-29,209
-50,341
-80,504
1,564 - - 0 0 1,514 1,564 408 398
1,564 - - 0 0 1,514 1,564 408 398
0 - - 0 0 0 0 0 0
1,030 - - 0 0 2,822 1,030 227 910
693 - - 0 0 687 693 42 53

Selected Explanatory Notes

to the Interim Report of SUSS MicroTec AG as of March 31, 2013

1. General Accounting Policies

The consolidated financial statements of SUSS MicroTec AG as of December 31, 2012 have been prepared in accordance with the International Financial Reporting Standards (IFRSs) applied by the International Accounting Standards Board (IASB) as of the closing date. The consolidated interim financial statements as of March 31, 2013, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," do not contain all of the necessary information as required for the preparation of the Annual Report and should be read in conjunction with the consolidated financial statements of SUSS MicroTec AG as of December 31, 2012. In the interim financial statements as of March 31, 2013, the same accounting methods were applied as in the consolidated financial statements for the 2012 fiscal year.

All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of March 31, 2013 have been applied.

The following new IFRS standards to be applied since January 1, 2013, are relevant for SUSS MicroTec AG:

Amendments to IAS 1 (Presentation of the Financial Statements)

Amendments to IAS 19 (Employee Benefits)

The retroactive application of the amended IAS 19 led to the complete recording in the statement of financial position of actuarial losses related to pension provisions, which were recognized with a time lag as of 12/31/2012 using the corridor method. The previous year's figures were adjusted accordingly.

For additional information about specific accounting and measurement methods, please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2012.

The Group auditor has neither audited nor reviewed the interim financial statements.

2. Changes in the Scope of Consolidation

The consolidated financial statements include the financial statements of SUSS MicroTec AG and of all material companies over which, independent of the level of its participatory investment, the proprietary company can exercise control (i.e. the control principle).

Compared with the consolidated financial statements as of December 31, 2012, there were no changes to the scope of consolidation.

3. Mandatory Disclosures

3.1 New Credit Agreements

SUSS MicroTec Group has various credit facilities with national and international banks and insurance companies. The credit and guarantee line of 1 7.5 million provided by the bank consortium led by BayernLB and with the participation of Deutsche Bank AG and DZ Bank AG remained in effect until March 31, 2013.

As of April 1, 2013, SUSS MicroTec AG and SUSS MicroTec Lithography GmbH concluded new credit agreements with the bank consortium. The new credit agreements resulted in credit and guarantee lines totaling 1 4.5 million. The new credit lines were granted until further notice and were issued without covenants. Their primary purpose is to serve as backing for down payment guarantees.

3.2 Initial (Retrospective) Application of IAS 19 (2011)

The following changes resulted from the initial application of IAS 19 (2011).

  • Discontinuation of the corridor method: As a result of the discontinuation of the previous discretion in recognizing actuarial gains and losses, they are to be recognized in full in shareholders' equity immediately.
  • Calculation of the pension expense: The net interest cost of defined benefit pension plans is determined on the basis of a net liability (the balance of the pension obligation and the fair value of the plan asset).
  • Unrecognized prior service cost: In case of future changes to the plan, the unrecognized prior service cost is recognized immediately in profit and loss.
  • Risk allocation: The new standard for risk sharing between employees and employer affects both the defined benefit obligation and the allocation of the prior service cost.

The SUSS MicroTec Group maintains defined benefit pension plans in Germany, Japan, and Switzerland. Using the corridor method, actuarial losses of 1 1,242 thousand were not recognized as of 12/31/2012. Pension plans are discussed in detail in the 2012 Annual Report (Notes to the IFRS consolidated financial statements, Item 22).

SUSS MicroTec AG applied IAS 19 (2011) for the first time retrospectively and adjusted the comparative figures accordingly. In the process, the pension provision as of 12/31/2012 / 1/1/2013 was increased by 1 1,242 thousand; in exchange, the deferred tax assets increased by 1 327 thousand. Accumulated other comprehensive income was adjusted by 1 -915 thousand.

As of 12/31/2011 / 1/1/2012, the adjustment amount in accumulated other comprehensive income came to 1 -412 thousand. It resulted from (so far unrecognized) actuarial losses of 1 551 thousand and corresponding deferred tax assets of 1 139 thousand.

3.3 Initial Application of the New Rules in IAS 1

The following change results from the new rules in IAS 1:

The items in other comprehensive income must be divided into two categories: Items that are recorded in later periods via the statement of income are disclosed separately from items that remain in other comprehensive income.

SUSS MicroTec AG has provided the necessary information in the statement of comprehensive income and in the statement of changes in equity. The comparative figures were adjusted accordingly.

3.4 Other Mandatory Disclosures

The securities held as available for sale recognized in the statement of financial position include – as in the previous year – corporate and government bonds as well as commercial papers with a term of up to three months. The securities have been measured at market prices. Any fluctuations in the market price are recognized in accumulated other comprehensive income and therefore do not affect profit and loss.

Financial expense includes 1 31 thousand in interest cost from the compounding of noncurrent financial liabilities, which resulted from the acquisitions of Tamarack / USA (100% acquisition) and Suss MicroOptics / Switzerland (15% acquisition) in the 2012 fiscal year.

Other issues influencing assets, liabilities, shareholders' equity, the result for the period, or cash flows and unusual in terms of their nature, magnitude, or frequency, did not arise during the interim reporting period.

4. Change in Presentation

SUSS MicroTec AG has accordingly implemented the required disclosures in the revised IAS 1 (see the discussion under Point 3.3). No further changes have been made; the remaining presentation of the consolidated financial statements as of March 31, 2013, is analogous to the presentation as of December 31, 2012.

5. Changes in Estimates

To the extent that estimates were made in the interim reports, the methodology underlying the estimates remained fundamentally the same during the fiscal year and in comparison to the previous fiscal year.

In a departure from the approach used at the end of the fiscal year, income tax expense in each interim reporting period is recorded on the basis of the best estimate of the weighted average annual income tax rate which is expected for the entire fiscal year.

SUSS MicroTec AG currently assumes that the annual income tax rate will deviate from the expected tax rate of approximately 28%. The primary reason for this is that the losses accrued by foreign subsidiaries cannot be capitalized.

Otherwise there are no changes requiring disclosure which would have a material impact on the current interim reporting period.

6. Bonds and Equity Securities

During the reporting period, no issuances, repurchases, or repayments occurred involving either bonds or equity securities.

7. Dividends Paid

During the reporting report, no dividend was distributed nor was such a distribution proposed.

8. Significant Events After the End of the Interim Reporting Period

In Mai 2013 the management board of SUSS MicroTec has decided to focus permanent bonding on MEMS and LED applications to address the unsatisfying earnings development of this segment. In connection with these measures a non-cash adjustment of 1 6.8 million in the second quarter 2013 will be necessary. The write-offs are on capitalized development costs, which originate from the years prior to 2008, as well as on no longer needed demonstration tools and inventories.

9. Contingent Liabilities and Receivables

There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2012.

10. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period (net of minority interests) by the average number of shares.

In order to calculate diluted earnings per share, the profit or loss for the period attributable to shareholders (net of minority interests) and the weighted average of outstanding shares are adjusted for the impact of all potential dilutive shares.

The following table shows the calculation of the basic and diluted earnings per share:

in 1 thousand Q1 / 2013 Q1 /2012
Loss from continuing operations -2,520 -245
Less minority interests 0 -26
Loss from continuing operations attributable to shareholders of SUSS MicroTec AG -2,520 -271
Weighted average number of outstanding shares 19,115,538 19,101,028
Effect of the (potential) exercise of stock options (number of options) 0 14,510
Adjusted weighted average number of outstanding shares 19,115,538 19,115,538
Earnings per share in 1 from continuing operations – basic – -0.13 -0.01
Earnings per share in 1 from continuing operations – diluted – -0.13 -0.01

Legal Structure

of SUSS MicroTec Group

Holding company Production

Sales Other /Non-operating

(1) in liquidation

Financial Calendar 2013

Commerzbank German Midcap Conference, Boston/New York May 22/23
DZ Bank Sustainability Conference, Zurich June 4
Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich June 19
Berenberg Investment Conference, Paris June 20
Interim Report 2013 August 8
Commerzbank TMT Conference, Frankfurt August 28
Bankhaus Lampe German Technology Seminar, Zurich September 13
UBS Best of Germany Conference, New York September 16–18
UniCredit/Kepler Investment Conference, Munich September 24–26
Baader Investment Conference, Munich September 24–26
Nine-month Report 2013 November 7
German Equity Forum, Frankfurt /Main November 11–13

Credits

Published by SUSS MicroTec AG
Edited by Finance, Julia Natterer
Investor Relations, Franka Schielke
Concept and design Whitepark GmbH & Co., Hamburg
Photography Michael Lange, SUSS MicroTec AG

ContaCt

SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Deutschland Phone: +49 (0)89-32007-0 E-mail: [email protected]

Investor Relations Phone: +49 (0)89-32007-161 E-mail: [email protected]

Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based oncurrent plans, estimates, and projections,and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement.

SÜSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Deutschland Phone: +49 (0)89-32007-0 E-mail: [email protected]

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